Empresaria’s net fee income up 13% in H1 2016

Empresaria Group plc has released its unaudited interim results for the six-month period ended 30th June 2016.

Empresaria continues to deliver on its strategy with a solid first half performance showing strong growth in profit over the prior half year with adjusted earnings per share up 26% on 2015.

The company’s revenue was up 15% (constant currency up 11%) from £92.4m in 2015 to £106.1m. The company stated that this was its twelfth consecutive quarter of underlying growth in NFI over the prior year.

Net fee income was up 13% (constant currency up 9%) from £24.1m in 2015 to £27.2m.

Operating profit was up 17% (constant currency up 14%) from £2.9m in 2015 to £3.4m. Adjusted operating profit was up 34% (constant currency up 27%) to £4.0m from £3.0m in 2015. The Group’s conversion ratio (adjusted operating profit divided by net fee income) increased to 14.8% (2015: 12.4%).

Profit before tax rose from £2.7m in 2015 to £3.1m, a rise of 15% (constant currency up 10%). Adjusted profit before tax rose 30% (constant currency up 24%) to £3.7m up from £2.8m in 2015.

Diluted earnings per share rose 6% from 3.2p to 3.4p. Diluted adjusted earnings per share rose from 3.4p to 4.3p, an increase of 26%.

The Group reported a debt to debtors ratio of 28% with net debt of £10.2m (2015: 32% with net debt of £9.9m).

Chief executive officer, Joost Kreulen, said, "Empresaria's diversified business model has delivered strong results for the first half of the year with adjusted profit before tax up 30% on the prior year. We continue to deliver on our strategy, driving both organic growth and undertaking further external investments as we develop leading brands that are diversified and balanced by geography and sector. The stronger growth in temporary and contract income has progressed alongside further growth from professional and specialist job levels. Our aim is to protect against any particular slowdown in any region of the world or staffing industry sector. So far this has produced twelve consecutive quarters of balanced growth.

“We are pleased to have finalised our recent investment in Rishworth Aviation, the second largest international recruitment company in the aviation sector and whose revenues are geographically diversified. We look forward to integrating it into our Group and providing a platform for its further growth and development. We expect it to be earnings enhancing on an adjusted basis this year.

“Our focus on continuing to drive organic growth is matched with an invest and develop approach with a pipeline of interesting prospects. We see good growth opportunities across our existing brands and from further potential investments. We remain confident in our ability to meet current market expectations."